Pay, Terms & Conditions at Camden

Capital Ambition Pay Club December 2010 .. Or the story of the tortoise and the hare.. We wanted to be hares…

• We wanted to achieve single status and modernisation at the same time (2007)

• Modernisation: – New pay scales – New grades – New PM scheme – New behavioural framework – New criteria for pay progression – Segmentation – Streamlined and simplified T&Cs. But it didn’t work …..

- High level proposals to TUs in Feb 2007 -> point-blank opposition
- Considered hard line options: took counsel opinion on possible routes
- Took stock of internal appetites and our long term ethos
- Decided to separate single status from modernisation and continue collective working on single status
- Continued work on modernisation in the background

Boxing hares Single status outcome

- Reduced original scope of all NJC staff down to 680 directly affected
- Used GLWC JE with TU agreement; older but less turbulence – very few people needed protection
- Didn’t pay any back pay but agreed a compensation payment matrix with the TUs – everyone got something
- Agreed a composite rate with HMRC – everyone got something more
- Used ACAS and COT3s to implement – everyone got protection
- 99.8% voluntary sign up within budget
- No ET1’s

Lucky white rabbit! Modernisation – Phase 1

- Longer timescale allowed greater clarification:

  - more joined up and cohesive scheme
  - clearer cultural messages
  - fixed more problems

- Weren’t in a position to roll out until April 2010 but needed to be ‘in the bag’ before May 2010

- Went for the easy win - SM group:

  - SM staff not part of NJC
  - SM pay was problematic anyway
  - Pay freeze was the order of the day
  - We needed to give a clear cultural message to this pivotal group “Jaw, Jaw, not War, War…..”

- TUs didn’t like but didn’t oppose

- Disproportionate comms exercise

  - 5 roadshows; Director-led
  - Comprehensive delegate pack
  - Individual Q&A via email
  - BP presentations to directorate management teams

- ….. all for 180 (key) staff

- A voluntary sign-up window

- Some “sweeteners”

  - Holiday
  - Salary increment

- Produced 80%+ voluntary sign-up

Looks like a tortoise? The SM Scheme

- Open pay ranges
- Pay determined by level in a new job family framework
- Generic job profiles, Hay evaluated; 180 staff covered by 3 profiles
- New PM scheme; 5 ratings; clearer about what “good” or “outstanding” looks like
- Pay movement determined by:
  - Position in the range
  - Performance rating
- Performance now judged based on:
  - what you do (SMART objectives)
  - how you do it (behavioural framework)
- Pay consists of consolidated and discretionary non-consolidated amount
- All increases based on range midpoint
- Distribution not forced for this group

## Proposed Pay Matrix

| RATING | Rating description | Position in the zone (compared to the zone midpoint) | |--------|----------------------------|-----------------------------------------------------| | | | 1<sup>st</sup> quartile | 2<sup>nd</sup> quartile | 3<sup>rd</sup> quartile | 4<sup>th</sup> quartile | | 5 | Exceptional performance | 3.5% & 2.5% one off | 3% & 3% one off | 2.5% & 3.5% one off | 2% & 4% one off | | 4 | High performance | 3.5% & 1.5% one off | 3% & 2% one off | 2.5% & 2.5% one off | 2% & 3% one off | | 3 | Good performance | 3% | 2.5% | 2% | 2% | | 2 | Needs to improve | 1% | 1% | 1% | 1% | | 1 | Poor performance | 0% | 0% | 0% | 0% | The SM Scheme (cont’d)

• New contract of employment: – Contracted to job family and level – Clarity that no additional payments will be made – Removal of many R&R payments

• New Pay Policy: – Clarity about how to calculate part year or job change scenarios etc.

• New T&C’s: – Cap/freeze on long service leave – No leave carry-over – Enhanced time off for public duties; reduced special leave – Longer working week (37 hours)

• Checks and balances: – Moderated objectives – “just in time” training – Increases based around the midpoint – Accurate descriptions of poor/needs to improve/good/excellent/outstanding – End of year moderation of ratings – Spread of distribution – Adjustment of pay matrix annually

• New economic pressures: – May need tweaked And now for the rest ……

- Revise pay, grades, terms and conditions of employment for remaining NJC staff
- A challenging proposition:
  - Not technically, but culturally
  - In terms of scope (around 4,500 staff)
  - Less leverage to encourage sign-up …or more?
  - Sensitive in political and ER terms
  - Positioning and timing are critical

Still trucking … Proposed changes to pay & grade

- Pay progression based on contribution not tenure
- New grading/pay structure developed
- Segmented approach: best fit to organisational level:
  - Staff at SO & PO level will have open ranges; pay comprised of base pay plus discretionary variable element determined by an affordability matrix (ignoring position in range)
  - Staff on Scale grades retain SCP approach – easier/clearer cultural message
  - Pay spine may be smoothed to regularise increments
  - New grades will be applied attached to job family framework
  - Contribution recognised by either:
    - Cash payment to recognise high performance or
    - Bar through which pay can’t progress without sustained excellence Proposed changes to T&C’s

• Based on some key principles that will inform all subsequent decisions, e.g.: – We will pay for disruption increasing the rate to match the level of disruption – We will pay only once – no double counting – No disruption; no premium • We offer and expect flexibility with no premium attached: – Extension of working hours – Extension of “normal hours” – Overtime paid at plain time; none paid until 40 hours worked; thereafter probably at time x 1.5 – Use of TOIL encouraged (and properly managed) • Harmonisation of leave at 28 days annual leave for all staff • Cap/freeze on long service leave (cost and cultural message) • No change to sick pay Impact on pay bill

• The proposed new scheme will allow costs to be taken out of the pay bill in three main ways:

– Pay & grade: • Through better control of pay increases; now a variable amount, subject to an affordable maximum each year • Through tighter control of grades and reduction in “grade creep”. Over the medium term an element of “right-sizing” of jobs will take place – Terms & Conditions: • Through the removal of multiple and over-generous premia payments • By reducing access to payments for overtime, disruption and anti-social hours – Improving productivity: • Capping/freezing long service leave • Increasing the working week Implementation

- 6-9 months development; 9 months roll out
- Option taken will determine speed of savings, *but*
- Direct correlation between speed and risk
- Local and national pressures will play their part
- Recent history should help us

*Red faced??* Questions?

lis.mccormick@camden.gov.uk 0207 974 7600 lis@mccormickandwood.co.uk 07736 726933